Transcription

2 Big demands and high expectations: What Generation Y wants from business, government, and the future workplace Big demands and high expectations summarize the results of this year s annual Deloitte Millennial (Generation Y) Survey. Across the globe 70 percent of tomorrow s future leaders might reject what business as traditionally organizational has to offer, preferring to work independently by digital means in the long term. This and other findings in Deloitte s annual study of Generation Y point to significant challenges facing business leaders if they are to meet the expectations of the Millennial generation. Millennials, who are already emerging as leaders in technology and other industries and will comprise 75 percent of the global workforce by 2025, want to work for organizations that foster innovative thinking, develop their skills, and make a positive contribution to society. The study also reveals that Millennials believe businesses are not currently doing as much as they could to develop their leadership skills and that they need to nurture their future leaders, especially as they cannot count on them biding their time until senior positions arise. Other key findings from the survey include: BUSINESS COULD ACHIEVE MORE. While most Millennials believe business is having a positive impact on society by generating jobs (46 percent) and increasing prosperity (71 percent), they think business can do much more to address society s challenges in the areas of most concern: resource scarcity (56 percent), climate change (55 percent) and income equality (49 percent). Additionally, 50 percent of Millennials surveyed want to work for a business with ethical practices. To attract and retain talent business needs to show Millennials it is innovative and in tune with their world-view, said Barry Salzberg, CEO, DTTL. Our society globally faces many critical issues and it s become clear no sector should go it alone. By working together and combining their different skills, business, governments and nongovernment organizations (NGOs) have an opportunity to reignite the Millennial generation and make real progress in solving society s problems. Barry Salzberg Chief Executive Officer Deloitte Touche Tohmatsu Limited 2 The Deloitte Millennial Survey Executive summary

3 GOVERNMENT IS NOT DOING ENOUGH. Millennials say government has the greatest potential to address society s biggest issues but are overwhelmingly failing to do so. Almost half felt governments were having a negative impact on areas identified as top challenges: unemployment (47 percent), resource scarcity (43 percent) and income inequality (56 percent). ORGANIZATIONS MUST FOSTER INNOVATIVE THINKING. Millennials want to work for organizations that support innovation. In fact, 78 percent of Millennials were strongly influenced by how innovative a company was when deciding if they wanted to work there, but most say their current employer does not encourage them to think creatively. They believe the biggest barriers of innovation were management attitude (63 percent), operational structures and procedures (61 percent), and employee skills, attitudes, and diversity (39 percent). ORGANIZATIONS MUST NURTURE EMERGING LEADERS. Almost one in four Millennials are asking for a chance to show their leadership skills. Additionally, 50 percent believe their organizations could do more to develop future leaders. MILLENNIALS ARE EAGER TO MAKE A DIFFERENCE. Millennials believe the success of a business should be measured in terms of more than just its financial performance, with a focus on improving society among the most important things it should seek to achieve. Millennials are also charitable and keen to participate in public life: 63 percent of Millennials gave to charities, 43 percent actively volunteered or were a member of a community organization and 52 percent signed petitions. It s clear that Millennials want to innovate and businesses should be listening, said Salzberg. Fostering a culture of innovation will not only help retain high-performing talent but it will also drive growth by creating opportunities for individuals to unlock the next game-changing innovations. 3 The Deloitte Millennial Survey Executive summary

4 An ambitious vision of what business can achieve Millennials most often cite four issues as the greatest challenges facing societies around the world: unemployment, resource scarcity, climate change/protecting the environment, and inequality of incomes and wealth. (Figure 1) Millennials feel these and other challenges should not be the exclusive province of either business or government. Both have important roles to play in addressing them. Not surprisingly, almost 90 percent of Millennials feel business could do a great deal or a fair amount to address unemployment while roughly three-quarters say the same about inequality of incomes and wealth. (Figure 2) But Millennials have a much broader vision of the potential of business. More than 80 percent of Millennials believe business has the potential to address the other two top-rated challenges: climate change/protecting the environment and resource scarcity. In fact, more than half of Millennials feel business can develop products 4 The Deloitte Millennial Survey Executive summary and services or adopt behaviors that will have a positive impact on each of the 20 challenges included in the survey. In Deloitte s 2012 survey, almost all Millennials said it is acceptable for business to make a profit from innovations that benefit society. Millennials are even more positive about the promise of government, with roughly threequarters or more saying it has the potential to address today s challenges. (Figure 3) They not only believe government has the potential to address societal issues such as education, skills and training, and climate change/protecting the environment, but more than 80 percent also see an important role for government in economic issues such as unemployment and inequality of incomes and wealth. 1 Business has the potential to develop innovative products and services to help address the most important issues facing societies around the world. The greatest challenges facing society are not the exclusive province of either business or government. Both need to work collaboratively to address them. 1 The questions about the potential of government to address society s challenges and the impact government is currently having on them were not asked in China.

5 Deloitte s prior survey found that Millennials believe solutions to society s challenges will not come from business and government acting on their own. Individual businesses will need to work with governments, universities, and non-profit organizations, as well as with other companies. The clear message is that businesses need to look outside the confines of their own enterprises and seek collaborative partners if they are to maximize the chances of finding innovative solutions to the issues facing society. But its performance is falling short While Millennials have a positive perception of business, most feel that it is not achieving its potential. Roughly three-quarters believe businesses have a positive overall impact on the wider society in which they operate. When it comes to specific challenges, Millennials think business is having a positive impact on such issues as education, skills, and training (38 percent net positive impact), stability of national economies (27 percent) and unemployment (12 percent). 2 (Figure 4) For several of the top-rated challenges, 5 The Deloitte Millennial Survey Executive summary however, more Millennials feel business is having a negative impact than a positive impact: inequality of incomes and wealth (-18 percent net negative impact), climate change/protecting the environment (-25 percent), and resource scarcity (-28 percent). Millennials are even more critical of government. Government is seen as having a net negative impact on three of the top challenges: unemployment (-15 percent), inequality of incomes and wealth (-31 percent), and resource scarcity (-12 percent). (Figure 4) In some areas where government has traditionally had an important role, Millennials believe business is actually having a more positive impact including education, skills, and training (+38 percent net positive impact for business; +6 percent for government) and healthcare/disease prevention (+18 percent for business; +8 percent for government). Although not fully achieving its potential, Millennials feel business is having a positive impact in areas traditionally seen as the responsibility of government such as education, skills, and training and healthcare/disease prevention. 2 The net impact for each challenge is the percentage of respondents who said business (or government) is having a positive impact minus the percentage that said it is having a negative impact.

6 In their own words: The impact of business on society MOST MILLENNIALS FEEL BUSINESS IS HAVING A POSITIVE IMPACT ON SOCIETY BUT MANY DO NOT TRUST THE ACTIONS OR MOTIVES OF BUSINESS Businesses are driving the growth of the economy. Singapore They create employment and can serve as role models and demonstrate how to produce/ trade in a sustainable way. Germany Businesses are essential to the economy and society itself. They underpin growth and innovation, provide jobs and services which keep the population moving forward. They are the precursors of modern technology and new innovation. United Kingdom Technology is improving steadily, initially focused on generating profit for business but over time it seeps back into society offering new ways to tackle old problems. Overall making society more efficient and positively affecting the general population. South Africa Many large corporate businesses in the United States only promote the growth of the wealthy and give nothing back to the middle or lower classes. They care more about their bottom line and their shareholders than they do about contributing to charities. United States Most businesses around the world are running their corporations with a single motive: to generate more profits. In an attempt to increase their bottom lines using resources like land, labour and capital in the short term [and] completely ignoring long term consequences of their decision. Although Corporate Social Responsibility has started with much fanfare, on the ground level noticeable changes have not yet been observed. India I believe that companies and businesses only think about their immediate profits. They are not concerned with what tomorrow will bring and what the damage of their relentless search for capital will do to future generations. Brazil Business promotes the advancement of society very well, but current businesses pollute the environment, and have a money making black heart, squeezing employees. China 6 The Deloitte Millennial Survey Executive summary

7 Building an innovative organization Who will generate the innovative solutions needed to address the challenges confronting societies around the world? Millennials most often cite business and individual entrepreneurs (44 percent), although substantial percentages expect either universities (23 percent) or governments (22 percent) to be the leading source of innovations. In fact, no group has a monopoly on creative approaches and new thinking. Innovative solutions are likely to come from many sources. For Millennials, fostering innovative, out-of-the-box solutions is more a matter of business processes than individual genius. Almost 60 percent of Millennials believe organizations can become good at innovation by following established processes and that innovation can be learned and is repeatable, rather than being spontaneous and random. To encourage the innovative ideas of its professionals, whether Millennials or their older colleagues, businesses will need to examine their culture and practices. Roughly two-thirds of Millennials feel the outlook and attitudes of management are serious barriers to innovation, such as a reluctance to take risks; a reliance on existing products, services, and ways of doing business; and an unwillingness to collaborate with other businesses or universities. A similar percentage cite a variety of organizational barriers that impede new thinking including poor channels of communication across the organization, lack of a formal process to encourage innovation, and a poor organizational structure. Attracting and retaining the best and the brightest Millennials want to work for organizations that foster innovative thinking, develop their skills as leaders and wish to see them making a positive contribution to society. But many Millennials find business lacking in these areas. Innovative solutions to society s challenges will come from a variety of sources including business, government, universities, and nonprofit organizations. 7 The Deloitte Millennial Survey Executive summary

8 As in the prior survey, an organization s support for innovation is important for Millennials. More than three-quarters of Millennials say they are strongly influenced by thoughts of how innovative an organization is when deciding if they want to work for it. Being seen as an innovative organization is even more important in attracting Millennials in emerging markets. A reputation for innovation is important for roughly 90 percent of Millennials in China and India when they choose an employer. Only about half of Millennials feel the organization they work for encourages its people to suggest new ways of doing things or rewards them for innovative ideas. Further, many Millennials believe they are not being given the opportunity to develop professionally. Only roughly half of Millennials agree that their organization does all it can to develop their skills as a leader, while in France, Spain, South Korea, and Japan this figure was less than 40 percent. In developed markets, business faces an additional challenge with this generation: rebuilding trust. While attitudes toward business in emerging markets are almost uniformly positive, many Millennials in developed markets have lost faith in the motives and actions of business. (Figure 5) Less than half of Millennials in developed markets believe that business shows a strong commitment to being sustainable, that its leaders are committed to helping to improve society, or that it behaves in an ethical manner. Businesses that fail to address these concerns may find they will lose skilled professionals in the years ahead, as many of the most talented members of the Millennial generation decide to leave large organizations and instead work for themselves. Roughly 70 percent of Millennials see themselves as working independently at some point, rather than being employed within a traditional organizational structure. The danger of losing talented Millennials is even greater in emerging markets. While 52 percent of Millennials in developed markets expect to eventually work independently, this figure rises to 82 percent in emerging markets. Roughly 70 percent of Millennials see themselves as working independently at some point in their lives, rather than being employed within a traditional organizational structure. 8 The Deloitte Millennial Survey Executive summary

9 A new generation with new expectations As they advance in their careers, hastened by the retirement of the large Baby-Boom generation, Millennials are rapidly assuming positions of greater responsibility. Business will gain a new generation of skilled professionals provided it can meet their expectations. Although Millennials value its role in creating jobs and expanding prosperity, they have larger ambitions for business. Millennials see a large gap between the potential of business to address the challenges facing society and the actual impact it is having. Fulfilling this potential will require businesses to do a better job of encouraging new thinking within their own organizations to develop innovative products and services, while also working collaboratively with government, with nonprofit organizations, and with other companies to develop creative solutions. The stakes are high. Millennials are today forming impressions of business that will last a lifetime. Millennials want to leave their mark on the world by working for organizations that benefit society, encourage innovation, and provide them the opportunity to expand their skills. More than previous generations, they are ready to work independently if their needs are not being met by a traditional organization. Businesses that can meet these higher expectations have the prospect of developing commercially viable products and services that benefit society, while attracting and retaining the most talented members of this emerging generation. About the Survey The survey gathered the views of more than 7,800 Millennials (those born in 1983 or later) who had a college or university degree and who were employed full-time. There were roughly 300 respondents each in 26 countries in North America, Western Europe, Latin America, and Asia-Pacific. The survey was conducted online from October 10 November 11, 2013 and was compiled by Milward Brown. The Millennials surveyed worked in organizations of a variety of sizes: less than 100 employees (26 percent), 100 to 999 (42 percent), and 1,000 or more (32 percent). The respondents were employed in various types of organizations including public-owned companies (20 percent), private-owned businesses (58 percent), public sector organizations (16 percent), not-for-profit organizations (3 percent), and other types (3 percent). 9 The Deloitte Millennial Survey Executive summary

14 Figure 5 VIEWS OF THE MOTIVATIONS AND BEHAVIOR OF BUSINESS PERCENTAGE AGREE 71% 75% 74% 64% 63% 48% 56% 45% 64% 54% 62% 52% 43% 42% 60% 49% 40% 56% They are helping to increase overall levels of prosperity They show a strong commitment to being sustainable Their leaders are committed to helping to improve society They behave in an ethical manner They work hard to minimize the environmental impact of their operations They operate in an open and transparent manner Global Developed markets Emerging markets 14 The Deloitte Millennial Survey Executive summary

15 Stay connected #MillennialSurvey Created by DTTL Global Brand & Communications Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication For information, contact Deloitte Touche Tohmatsu Limited.

www.pwc.com Millennials at work Reshaping the workplace The millennial generation, now entering into employment, will reshape the world of work. Are you ready? About the survey Four years ago, we began

The future of work A journey to 2022 10,000 people in China, India, Germany, the UK and the US give their views on the future of work and what it means for them 66% see the future of work as a world full

making work better: an agenda for government An independent inquiry into the world of work by Ed Sweeney and supported by the Smith Institute The Smith Institute The Smith Institute is an independent think

engagement between business and community organisations A summary of research into businesses current practices, needs, motivations and experience around supporting community organisations. À À Practical

LOCAL GOVERNMENT GOVERNANCE REVIEW 15 All aboard? Key highlights ENGAGING MEMBERS are satisfied that their organisation supports risk taking consider backbench members have no real influence over decisions

Defining Materiality: What Matters to Reporters and Investors Do investors and reporters agree on what s material in the Technology Hardware & Equipment and Banks & Diverse Financials sectors? ABOUT GRI

A New Vision for Older Workers: Retain, Retrain, Recruit Report to Government by Dr Ros Altmann CBE Business Champion for Older Workers A New Vision for Older Workers: Retain, Retrain, Recruit Contents

Time for a more holistic approach to talent risk Global risk survey calls for a new take on talent management KPMG INTERNATIONAL About this research Between May and August 2013, KPMG International collaborated

»Education to Employment: Designing a System that Works McKinsey Center for Government Education to employment: Designing a system that works Authors 3 authors Mona Mourshed Diana Farrell Dominic Barton

»Education to Employment: Designing a System that Works McKinsey Center for Government Education to employment: Designing a system that works Authors 3 authors Mona Mourshed Diana Farrell Dominic Barton

PROGRAMME FOR SCOTLAND 2014-15 one scotland one scotland PROGRAMME FOR SCOTLAND 2014-15 The Scottish Government, Edinburgh 2014 ONE SCOTLAND Crown copyright 2014 You may re-use this information (excluding

Report of the 21st Century Social Work Review changing lives Report of the 21st Century Social Work Review lives changing Scottish Executive, Edinburgh 2006 Crown copyright 2006 ISBN: 0-7559-4824-6 Scottish

International Co-operative Alliance Blueprint for a Co-operative Decade January 2013 BLUEPRINT FOR A CO-OPERATIVE DECADE This Paper has been written under the guidance of the Planning Work Group of the

Are you innovation ready? Plotting your journey on the Innovation Readiness Model Message from Andy Green CEO, Logica I believe that the future success of our global economy relies on building a dynamic

Research report January 2010 CREATING AN ENGAGED WORKFORCE CREATING AN ENGAGED WORKFORCE FINDINGS FROM THE KINGSTON EMPLOYEE ENGAGEMENT CONSORTIUM PROJECT This report has been written by: Kerstin Alfes,

New Skills for New Jobs: Action Now A report by the Expert Group on New Skills for New Jobs prepared for the European Commission The content of this report was prepared by a group of independent experts

NETHERLANDS GEN Y AND THE WORLD OF WORK A report into the workplace needs, attitudes and aspirations of Gen Y Netherlands 1 GEN Y AND THE WORLD OF WORK CONTENTS FOREWORD FOREWORD 3 SUMMARY OF OUR RESEARCH

Social Exclusion Task Force Think Family: Improving the life chances of families at risk Social Exclusion Task Force Ministerial Foreword Ministerial Foreword For over ten years now, the Social Exclusion

PEOPLEINAID Code of good practice in the management and support of aid personnel The People In Aid Code of Good Practice, 2003, is a revision of the People In Aid Code of Best Practice, 1997 PEOPLEINAID

GROWTH THROUGH PEOPLE 2 INTRODUCTION Introduction The UK economy is on the mend. After one of the most challenging recessions in living memory we are now seeing growth and increasing employment. But the

JANUARY 2007 looked after children & young people: Working together to build improvement in the educational outcomes of Scotland s looked after children & young people. looked after children & young people:

PROFIT-WITH- PURPOSE BUSINESSES Subject paper of the Mission Alignment Working Group SOCIAL IMPACT INVESTMENT TASKFORCE Established under the UK s presidency of the G8 September 2014 Contents Executive

Making the right connections across Australia s innovation ecosystem to support our future growth and international competitiveness Welcome 4 Introduction 5 Research findings and recommendations 9 Next

gateway to growth CBI/Pearson education and skills survey 2014 About the sponsor Pearson aspires to be the world s leading learning company. It offers many different forms of learning, delivered in a personal